06 Mar 2025

A short to medium term Informal Sector Recovery Plan was developed with support from the United Nations Development Programme (UNDP, says Assistant Minister of Trade and Entrepreneurship, Mr Baratiwa Mathoothe.

Responding to a question in Parliament, he said the aim of the plan was to address effects of COVID-19, which laid bare the vulnerability of this critical sector, but also a long-term view to fully-harness the potential of the sector.

He said the key guiding principle of the plan was to build ideological leadership that would lobby for the importance, vision and high-level attention required to ensure the accomplishment of informal sector, Vision 2036 and Sustainable Development Goal 8 objectives.

Mr Mathoothe said the building blocks for the realisation of this overall policy objective were to be achieved based on the five principles: Transition to Formalisation (Decent Work), Informal Sector Facilitation, Economic Resilience of the Informal Sector, Support for Women and Support for Youth, Entrepreneurial Mobility, and Health First.

He said the Informal Sector Recovery Plan established a solid base towards an integrated and comprehensive policy for the support of the informal sector. While such has not yet been completed, he said there were some key initiatives undertaken since the unveiling of the plan and these included Industry Support Facility for the informal Sector, which disbursed P50 000 000 to 50 000 informal sector businesses.

This he said was a once-off P1 000 (emergency financial support) to assist informal traders after they could not trade due to COVID-19 restrictions and was administered by the Local Enterprise Authority (LEA).

“As part of the Industry Support Facility, a budget of P20 million was set aside for developing supporting infrastructure for the informal sector, notably to improve their trading and working environment,” he said.

He said the planned projects included Selebi Phikwe Market Stalls, Ledumang Carwash City, Letsholathebe Horticulture Project, and operationalisation of Lobatse and Francistown Fresh Produce Markets, which unfortunately had closed down. Other planned projects in Maun, Jwaneng, Francistown could not kick off as the budget allocated could not cover them, the assistant Minister said.

In addition, he said, government in partnership with UNDP, developed an Informal Sector Strategy for the City of Francistown in an effort to mainstream the informal sector into development. He however said conflict between law enforcement agencies and the Informal Sector was attributed to weak regulatory frameworks across the various Local Authorities.

“To address this challenge, the Ministry of Local Government and Traditional Affairs is currently developing a transformative national regulatory framework that would reconceptualise the informal sector,” he said.

Mr Mathoothe also said the overarching objectives of the regulations, which would be completed in the current financial year, included creation of an enabling environment, ensuring that informal traders’ right to trade was respected.

He said it would also provide dispute-resolution mechanisms that enabled informal traders to appeal and challenge any official decisions that negatively affect them and ensured that informal trade designated areas had access to basic services including water, sanitation, waste management and cleaning services.

Bobirwa legislator, Mr Taolo Lucas had asked the minister to state government policy, plans and strategies for the growth and empowerment of the informal sector and the financial assistance packages to the informal sector. He also wanted update on ways through which informal sector businesses could be protected from abuse and harassment by bye-law officers and occasionally by the police. ENDS